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Home Office Issued Revised Guidelines for Employers Concerning Right to Work Checks in the UK
On 21 June 2024, the Home Office issued revised guidelines for employers concerning right to work checks in the UK.
Key updates include:
EU Settlement Scheme (EUSS):
Employers are no longer required to conduct repeat right to work checks for individuals holding pre-settled status under the EU Settlement Scheme (EUSS). A single check for pre-settled and settled status holders is sufficient before employment begins.
Biometric Residence Permits (BRPS):
Employers do not need to re-check an employee’s permission until it is due to expire, even if their physical BRP card expires by 31 December 2024. The transition to digital proof of immigration status (eVisas) by the end of 2024 means BRP cards may display an expiry date of 31 December 2024, despite the holder’s permission to stay in the UK beyond that date. The expiry date of immigration permission will be visible on their online profile.
Asylum Claimants:
Employers of asylum claimants holding Application Registration Cards (ARCs) must ensure these individuals have the right to work, verified through a Positive Verification Notice (PVN) from the employer checking service (ECN). There are specific restrictions and conditions depending on when the permission to work was granted, which are detailed in the guidelines.
Compliance Requirements:
It is mandatory for all UK employers to conduct right to work checks. Failure to comply can result in penalties of up to £60,000 per illegally employed worker, loss of sponsorship privileges for migrant workers, and potential criminal convictions.
These updates aim to clarify and streamline the process for employers, ensuring they meet their legal obligations while supporting compliance with immigration rules in the UK.
If you or your connections require legal advice, please contact Jayesh Jethwa or fill out our enquiry form below.
The Importance of Holding a Sponsor Licence for UK Businesses
Recent data from the British Chambers of Commerce (BCC) reveals a concerning trend: while 59% of UK businesses are actively recruiting, a staggering 80% face significant challenges in finding suitable candidates. Sectors like manufacturing and hospitality are particularly hard-hit, with an 83% difficulty in recruitment.
To address these challenges, the BCC advocates for solutions such as expanding the shortage occupation list, which would facilitate easier hiring of sponsored migrant workers for roles in high demand. This approach highlights immigration as a crucial avenue for alleviating current labour shortages.
The importance of sponsor licences has become even more pronounced post-Brexit. Prior to the UK’s departure from the EU, EU nationals contributed significantly to the UK workforce, filling many employment gaps across various sectors. However, since 1st July 2021, these nationals now require specific immigration statuses to work in the UK. Consequently, obtaining a sponsor licence has become standard practice, even for hiring from the EU.
Benefits Of Obtaining A Sponsor Licence
Access To A Global Talent Pool
Obtaining a sponsor licence enables UK businesses to tap into a diverse global talent pool. Whether it’s the specialised technical skills of a software engineer from Berlin, the creative insights of a graphic artist from Seoul, or the strategic financial expertise of an analyst from New York, a sponsor licence bridges geographical gaps.
This not only helps businesses meet their specific staffing needs but also fosters innovation and growth by introducing diverse perspectives and approaches. In essence, acquiring a sponsor licence allows UK companies to open doors to a world of possibilities, rather than just hiring employees.
Addressing Skill Gaps
As the UK continues to navigate challenges arising from Brexit and the aftermath of COVID-19, significant skill gaps persist across various sectors. These gaps can impede progress, stifle innovation, and compromise a business’s competitive edge. Fortunately, the sponsor licence offers a lifeline for companies facing such obstacles.
With a sponsor licence, UK organisations can strategically recruit from regions known for their expertise in specific fields. For example, a UK-based startup specialising in quantum computing could recruit top-tier professionals from abroad who possess rare skills in this burgeoning field.
The sponsor licence not only helps fill critical vacancies but also ensures that hires align with a company’s vision and strategic goals. It serves as a conduit for businesses to stay abreast of global advancements and maintain leadership in their industries.
Enhancing Competitive Advantage
In an era marked by rapid technological advancement and evolving market demands, maintaining a competitive edge is crucial for business success. A sponsor licence plays a pivotal role in achieving this goal. By enabling international hiring, businesses can assemble teams with unique skill sets and diverse experiences that may be scarce locally.
For instance, a UK fintech firm can leverage a sponsor licence to recruit blockchain experts from Canada or data security specialists from Israel, countries renowned for their expertise in these domains. Such strategic hires not only elevate product and service quality but also position the firm uniquely in a crowded marketplace.
Moreover, while competitors may be constrained by local talent limitations, businesses with a sponsor licence can leverage global expertise to forge ahead. Thus, the licence becomes a strategic asset that propels businesses towards unparalleled success.
Flexibility In Recruitment
Adaptability is crucial in competitive industries. A sponsor licence empowers UK employers with unmatched flexibility in their recruitment strategies. Previously confined by the limitations of the local talent pool, companies can now cast a wider net beyond the UK’s borders to swiftly secure the precise skills they need.
While the domestic labour market has its strengths, specific niches and specialised skills may be better represented overseas. Herein lies the beauty of the sponsor licence—it liberates organisations to identify, interview, and onboard professionals as needed, without the bureaucratic constraints that may have hindered them previously.
This agility not only ensures smoother project execution but also reinforces a company’s responsiveness to market dynamics.
Promoting Workforce Diversity
Diversity is no longer merely a buzzword; it’s a catalyst for innovation. UK organisations can leverage the sponsor licence to cultivate diverse teams comprising individuals with varied backgrounds, cultures, and experiences. Such teams are often more adept at devising comprehensive solutions that resonate with a global audience.
A diverse workforce brings fresh perspectives, unique insights, and diverse life experiences that enrich brainstorming sessions and foster a more inclusive workplace culture. This blend of talents enhances creativity and productivity, leading to superior products and solutions.
Facilitating Growth and Expansion
Modern businesses often aim to expand beyond local markets. For companies seeking to establish international footholds, a sponsor licence offers more than just recruitment benefits. It serves as a foundational tool for navigating foreign markets by hiring professionals who understand local consumer behaviours, regulatory landscapes, and cultural nuances.
These international hires not only contribute professionally but also stimulate local economies by becoming consumers, taxpayers, and catalysts for international trade opportunities. Their presence can foster collaborations and partnerships that bolster the UK’s economic vibrancy.
Enhancing Reputation
In today’s interconnected world, reputation is a valuable asset. Organisations that demonstrate commitment to excellence, inclusivity, and global collaboration often enjoy enhanced credibility and attractiveness to stakeholders, clients, and prospective employees.
A sponsor licence signifies a company’s dedication to these values, showcasing its readiness to scout for top talent worldwide. Over time, such a reputation can bolster loyalty, trust, and business growth for UK sponsor companies.
Navigating The Sponsor Licence Application Process
Applying for a sponsor licence entails more than paperwork—it requires navigating Home Office guidelines, understanding skilled worker visa processes, ensuring application accuracy, and maintaining compliance. This process can seem daunting, but support is available.
Our experienced team stands ready to guide and assist throughout the sponsor licence application journey. Together, we can ensure your business is equipped to harness global talent seamlessly.
Conclusion
In conclusion, as we look ahead to 2024, it’s evident that adapting to regulatory changes, such as the upcoming revisions to right-to-work checks, is essential for maintaining operational integrity and competitiveness. The strategic acquisition of sponsor licences emerges as not just a compliance necessity but a pivotal tool for accessing global talent and driving sustained business growth.
We encourage you to take proactive measures to ensure your organisation is prepared for these regulatory shifts. Explore how obtaining a sponsor licence can not only streamline your recruitment processes but also enhance your ability to innovate and meet market demands effectively.
Contact our team today to discuss how we can assist in navigating these changes seamlessly and leveraging sponsor licences to secure the skilled professionals your company needs. Together, let’s embrace these opportunities to strengthen your business’s position in the global marketplace.
Thank you for engaging with us in this exploration of regulatory developments and strategic workforce management. We look forward to supporting your business’s success in the dynamic year ahead.
If you or your connections require legal advice, please contact Jayesh Jethwa or fill out our enquiry form below.
How to Secure a Sponsor Licence for Your Start-Up: A Guide From a UK Immigration Lawyer
Overview
The first quarter of 2024 has shown significant growth for start-ups in the UK, with a 10% increase in new business registrations compared to the previous year, according to Companies House data. Despite challenging economic conditions, this surge in entrepreneurial activity persists. However, many start-ups face a significant skills shortage, prompting them to look beyond UK borders for top talent. This guide outlines how your start-up can secure a Sponsor Licence to hire skilled workers from abroad.
The International Labour Market and Skills Shortage
Nearly one-third of UK businesses report experiencing a labour shortage, as highlighted by the Office for National Statistics (ONS). This shortage is exacerbated by various factors, including high energy prices, rising borrowing costs, and international conflicts. The Federation of Small Businesses reports that 80% of small firms struggle to recruit candidates with the necessary skills. As a result, many start-ups are seeking talent from overseas to meet their business needs.
Understanding The Sponsor Licence
A Sponsor Licence permits UK employers to hire workers from outside the UK, including the EU. It also covers unpaid roles, such as charitable work.
Exceptions
There are exceptions based on agreements between the UK and specific countries. Consult with an immigration solicitor to determine if you qualify for an exemption.
Steps To Obtain a Sponsor Licence
- Eligibility Check: Verify if your start-up qualifies for a Sponsor Licence.
- Role Suitability: Ensure the position you intend to fill is eligible for sponsorship.
- Licence Type Selection: Choose the appropriate type of licence based on the role.
- Sponsorship Management: Designate individuals responsible for managing sponsorship within your start-up.
- Online Application: Complete the application online and pay the applicable fee.
Eligibility Criteria
To be eligible, your start-up must meet specific conditions demonstrating good business and employer conduct:
- No unspent criminal convictions, especially related to immigration offences, fraud, or money laundering.
- No Sponsor Licence revocation in the past 12 months.
- Adequate systems to monitor sponsored workers, including staff to manage sponsorship and a track record of reliability and compliance.
Role Suitability For Sponsorship
The role you wish to sponsor must meet the UK Immigration Rules. For instance, roles must comply with minimum wage and working time regulations. Specific salary thresholds apply depending on the visa category:
- Skilled Worker Visa: Generally, £38,700 per annum.
- Scale-up Worker Visa: Generally, £36,300 per annum.
Quastels’ experienced advisers can assist you in navigating these requirements.
Types of Sponsor Licences
Your choice of licence will depend on the nature of the employment:
- Temporary Worker Licence: For short-term roles such as volunteering or job-shadowing.
- Worker Licence: For employing skilled workers in short-term, long-term, or permanent roles. This excludes certain roles like the Scale-up Worker, intended for supporting fast-growing businesses.
Sponsorship Management
Your start-up must appoint individuals and establish systems to manage the sponsorship process and the sponsored workers. Key roles include:
- Authorising Officer
- Key Contact
- Level 1 User
These individuals must pass suitability checks, such as having no unspent criminal convictions and not being fined by UKVI in the past 12 months. They should also be based in the UK and not subject to bankruptcy restrictions. Quastels can help assess your compliance with these requirements.
Application Process
The final step involves completing the application, submitting supporting documents, and paying the relevant licence fees.
Conclusion
Securing a Sponsor Licence is essential for start-ups looking to hire international talent. By following these steps and ensuring compliance with UK immigration regulations, your start-up can successfully navigate the process. For personalised assistance, consider consulting with Quastels’ experienced immigration advisers.
If you or your connections require legal advice, please contact Jayesh Jethwa or fill out our enquiry form below.